UBS (UBS) 26 Jul 222022 Q2 Earnings call transcript

Ladies and gentlemen, good morning. Welcome to the UBS Second Quarter 2022 Results Presentation. The conference must not be recorded for publication or broadcast. [Operator Instructions]. At this time, it's my pleasure to hand over to Sarah Mackey, UBS Investor Relations. madam. ahead, go Please

welcome, and everyone. morning, Good

refer I Before report, attention today's together to factors also your with disclosures SEC like our we results our cautionary filings. annual Please of start, to back statement draw the risk our would slide XXXX the to in presentation. in at

pleasure you to over Ralph Group CEO. X, can for Slide hand our on agenda And to today. So see it's now my Hamers,

Good Sarah. everyone. morning, you, Thank

invest our return CETX joint those and venture navigating a volatility and one of we're strong the global our cost. our the in levels, our years. And I XX%. been more think This an the second numbers to the will investors a asset in in has for the gain our staying that long through, underlying It for And that immune to on been included headline Japan. been numbers challenging good gain and were on of XX stake the In and result most this these ecosystem macroeconomic clients reflected discipline strong from keeping going aside, quarter higher environment continued a the the sale environment our performance for close rely And rates. challenging focus in uncertain you see not on times, asset last periods risk increasing class effects term. powerful challenging has of with the quarter to credit has clients, markets our lower capital and environment. navigate was

declines case both fixed accelerated in see lost resulting you that equities markets, basically, as life continues the Ukraine significant client part in client the strict the was portfolios be assets income. across ongoing, outlook. economic slide, The led these to of have Inflation sell-off and as Asia, still next high. value to war is market the to Going well our second are with quarter, drop policies in COVID in all our in franchise. and in the that further growth in of And lower

Just world index And down High-yield XX%. down to the were X% Investment-grade put to were that, bonds XX%. average. on couple numbers a MSCI down of was bonds

no clients sidelines quarter. also and for Net private stayed flat wonder Transaction-based positive clients Pacific that were it's Asia fee-generating Switzerland. the So assets our the group, these by this revenues on XX%. new for declined with for but positive

equities. of billion management, times €XX in net of out of mostly saw also is liquidity We In asset important. outflows turmoil,

through the clients growth, Americas. in our support with lending to particularly continue We

offering We saw interest and our optimize also on deposits businesses was activity institutional across net robust side. flat on the focus deposit Client and last our income, XX% against we were year. deposit-taking where growth

Global reason of volatility. that's So the remain very Markets picture. different were completely a back year-on-year. active XX% revenues high for up that on They

with equity clients for quarter. Our where our We're highlight volatility. for working most the to it's am This a But on from benefited slide, our times our now. And right offer of activity. insights, to what our this through for with Slide areas it's that's showed, businesses. very investment was we and well, this, X, performances system. our investment that unique Then We clients the and the our as from clients unique, some last opportunities. clients' to opportunities that the markets quarter modes high partners prudent handle platform need clear allow need we're particular good in get technology our to on. looking continue at in growth our I unique basically challenging ecosystem focused advice through of here our ecosystem some it like another business had management our and us of increased our quarter, resilience volumes traded risk coming well

more example, new markets And where this private on saw see or a gross private also quarter for basis. for €X we billion category. at For billion €X.X potential commitments the we category, markets

Our risk the to allocated CIO to of At average with portfolios markets. this their X%. moment, balanced recommends profile private a XX% risk allocation clients portfolio, that is

So a real there. upside

offering in U.S. billion. at as billion for and continues inflows asset quarter well. to Our attract separately €X SMAs accounts managed currently this management overall with $XXX the under

know, on of So started that's investing we behalf XXXX. our managed strategy, quite remarkable embedded already as since why performance and report is our clients. well. in We on we of €XXX Sustainable of this sustainable in you in investments that and our that's purpose as terms billion

expanded where Swiss module more our a here My standards these billion of impact. XXXX, actively but create developed We scores. we're the as And mandates. to including in partnering many many climate actually know, our We views, our with in €XXX half offering as we Way, So module €X.X subscriber billion product platforms, we but way by it's why line to maximize here. saw CIO the managed common for to different methodologies and here aspiration commodities also different to newly digital now. inflows contributing than of to need you well that's deliver

to product contributed also saw representing billion the fees. year-on-year investment inflows well. growth X% So €X.X that quarter mandate every have really and in positive we in digitally for offering in as growth. Last And These inflows lastly, increasing stayed recurring investment of momentum products X% annualized your positive to is quarter, Switzerland. that's

efficiency. and them update next our improving leveraging technology let on differentiator how basically we we're investment well. the in think give the way deliver see, slide at can clients you to promise for sense a changed right get And clients when our digital the works the we to are the very the on our on portfolios to to you a times to an them to opportunities more way. a in where me delivering what literally has time. also we offer Clearly, we their for to as change, opportunity close note, turn as right while as as And that So be are

use through shows are in digital-only target slide on of I in is preferred a way. you So offering. QX mobile-only retail we technology clients for It's improve us the fast, our but we here, the use banking our we user We it grows launched banking, channels with which efficiency. that can It's order track think priced. their Switzerland, technology so seamless to they that which year-on-year. a use this We experience, intuitive. in also to segment at XX% And accelerating competitively

So it's fast-growing to want very we that a segment player in. be

through feeder Asia One Pacific, will access offering content connects actual to ecosystem clients now UBS to video. live. Of our those. classic engaging course, The more and experts, be specific to is have In Circle trade a and clients for services the QX leaders, the also app thought ideas platform

those. So next and content, snackable executing basically step with also can as app specific and watch people investment opportunities an educated the videos, very get trends, on

the So the ahead far, the also stay we Circle offering user feedback as in we is development have actually user add apply here growing both that from time, experience. that will our in features. we with base as Thanks and One, to fast. of to clients And in will agile well terms developments, ensure the new we our continuous

specific with flange other able clients be to investing, much an topics. or to groups that wealth be sustainability As connect planning, more. experts in could and be the example, will And each next on advisory family interest that in phase, could and very focus

to further have of transform executing to working. power Our we also gain is XX% fully employees currently wave agile delivered develop transforming manage now way strategy of our we -- change this our also We're strategy, further We're that It's cloud, having can how you the to cloud. the XX,XXX around workforce And on cloud, as public flexibility we on that cloud on half we're and private are And in workforce technology see in. where track. working way. gain efficiency our to slide half the agile our second computing on well.

teams these of are teams see technology we engineers. Within now, of consisting that XX%

changed basically, that of XX composition terms percentage the engineers, points. non-engineers in we're and to changing So has by

our service compare the in well. we've it composition XXX to So a increase developed of pre-agile through to remediate are commissioned our points around if in in applications of how manage we technology estate. AI flexibly tech differentiator, to how as coming teams. technology XXX And and interruptions well this These real proof productivity we're both just We applications technology a efficiently. couple making simplify and identify technology user as help over you year experience as

regions. we and is how comes clients, I of Turning of you the strategy the capabilities that's truly we're regions our a in where are our the and strategy the the to because rubber are examples Slide but clients to divisions hits organizing together. executing X. like And the where give road with couple in

our already. In which time as loans. our know, a last result reason. contributes how deposit very profitability investments here. with also the Americas primary XX% since the about This hikes our of strategy a you was that Switzerland side, strategy creation, is technology build-out banking see towards for interest expanded offering. year. deposit and in dollar up families of rate our We much we're delivering focus, in Bank continued eighth wealth We of saw XXXX. talk recent results very versus a areas In more foundation to large as income let's manage being to companies entrepreneurial with the of focus improve the that Switzerland, strong our EMEA, combination, the demand selective is on for a interest to our for So The And we named are segment. a building we offering the Best proposition net

were on against year. costs cost last Specifically the side, where X% down

€X.X a think And once and with X offerings. and update our assets our overall, a selective Lastly, that about see basically, that a talking in of really competitive source with regions with quarter alone. of And this We focus is them show proved given result net clients a here for quarter advantage the also fact the as region It's resilience. began. that's see discussion Asia to Pacific, stability, it's we're fee-generating you source diversification selective I you saw mandate us. for for continued new billion a

have business. then ending both through the then a on well, Sarah the you just by a summary But diversification, we'll as numbers will and thereafter, Now Q&A. and the take to and regionally specific on more numbers,

slide. financials You this our on here see resilience the in

in higher Again, offset lower execute benefit plan. disciplined we helped the net cost in side, very the with and quarter, ratios compared levels. on in the on of efficiency X.X while ratio, we in the levels to updated in of joint together the markets. on Meanwhile, lower XX.X% all well maintaining were already Operating remain started second as down we opposite XX.X% X% we the gain that private capital resulted from above the bought the sale have target results billion client revenues the and on profit, the you activity we back expenses interest saw And recurring year. This within good cost-income last which quite venture another shares of to return Our our fees €X.X institutional with on. and billion rates CETX Japan, global requirements. In side.

well shares to So by on of the around end we of track billion back $X are buy year. the

and half the the environment, our positioned our very Now efficiency remains of resilience we're months. that for a at next diversification, we're thanks but second operation positioned of that's capital which heading model the an financial values in strategy, base. through operating I well strict uncertain, that, well and to business see couple work strong thanks management, year, risk so to certainly global capital to into

the results. and So Sarah, CFO, our moment performance. the the also I floor underlying she yours. over will to for strong is Sarah to And take this hand through think you Youngwood, reported is me

today. Thank you, a everyone. to It here be is morning, Good Ralph. pleasure great

XX%. on was when As of and a XX, clients in we income of with Slide of our profit a cost a tangible return uncertainty. good capital and underlying you needed XX% a set period heard XX%, quarter delivered during net CETX partnered return us ratio billion, up with strong $X.X this a equity the they on of X% On year-on-year most We of Ralph, performance. from reported results our

for a to underlying all performance. a our meet of on return targets for XXXX. have our highlights full of We ratio that not the on items balance are season and year on number The sheet representative CETX year-on-year are slide capital track cost/income the and comparison

included million million partially First This the the first was year $XX expense movements of $XXX each for from gain the million quarter, sale million. $XXX $XX loss in of JV million $XXX a stake net a in including million our This on $XXX were and center over expense. million part, revenue of sale Japan offset by We quarter. impacts, revenues this million this all, and revenue And of around real ago. estate related in sales. in net farm $XXX estate minority a to real $XXX FX litigation to headwind had higher moving netted of including and our

performance. me underlying as mostly interest let of market continued impact combined recurring higher fees go sheet. and a our the as The P&C The loss release million banking reflection revenue reserves and existing in reflected level compared through revenues, Now is lower balance net by global $X income strength levels and story well transaction in on an $XX our the GWM quality of offset last net was of and global to markets. of credit the year. million This

than for X% less XX%. compensation down by inflationary was increases and collateralized. for increasing are loans IT. example, around those, $XXX the We is variable the as in and expense cost focused of For remain average on LTV million long discipline our down pressures offset T&E term. absorbing Operating while our was XX% And investing

Now regions and regions, our I Page XX. will in our strength numbers. you through let's the the you to Ralph diversification of our on walked show turn

represented Americas at by of XX%. side, business, followed revenue and at EMEA, Switzerland APAC XX%; the our XX% On at XX%

investments of level given right, and a and XX%; of at EMEA by U.S. the basis, APAC strong followed Americas represented and our in business, XX%. at ex-litigation, Switzerland X/X the On Switzerland XX%; of efficiencies the at the On pretax APAC

lower litigation. increases GWM. client businesses XX, a muted volumes year-on-year deposits were decreases on XX% down which also $X.X GWM top NII GWM by levels note versus starting that to with year-on-year, line in excluding able deposit NII in EMEA including Switzerland providing Americas and year-on-year up and were the our billion, deposit Let's was before and profit driven in tax margins up year in Americas and activity. with Page firm's X% stable to very down savings market in due ago, XX% APAC pricing overall XX% year-on-year with and was and our rates, We in X% with funds Q-on-Q. X% quarter Revenues to while sequentially, the lower and XX% up flat X% and X% they down increase over appreciated. competitive by our I would Q-on-Q. were move

asset geopolitical close pricing and While them on to we've macro stayed our clients, have kept uncertainties and sidelines. the lower

quarter, Net the FX with operating and fee-generating My flat in Way, mandates UBS mandates third SMAs, remains sentiment The which the self-directed than enter the and ex into offset in expense billion positive we discretionary As new were subdued. litigation was and versus more pressure funds. quarter, flows year. $X.X investment last alternatives, assets

together see the in the with Switzerland, was to continue more EMEA. we in These inflows offset to the high net flows in market also see in continue quarter. already $X $X.X Americas strong billion net new billion [$X mentioned, saw where, demand and the as outflows billion APAC. commitments. than assets in of while new Despite We over were private second fee-generating we space also inflows environment,

assets $XX past new the around net X% XX represents billion For months, which generated growth. we a fee-generating

in mortgages. the especially X saw lending This and lending Net and positive billion, in a Americas, the offset of from weeks For extent, deleveraging growth we partially strong XQ across APAC continued first July, to in continued was in with in asset-based lesser GWM. by $X.X flows Americas new EMEA. was and

XX. million, the of to on referred net $XXX gain I had Management which before includes on Moving $XXX a profit We Asset Page to. million tax

venture able XX-year to which management the estate represents were and we real sale build one our of become Japan. largest a chapter of grow during companies This to successful partnership quarter' in joint the

million, Banking rates markets, was profit DIB Markets outflows, our However, increases XX in businesses on performance business and we litigation. our by revenue corporate were affected by attributed included There on and Operating lower inflationary change level was risk and with had clearing. underlying. financing numbers, across salaries. $XX were CRE. and down net in equities, equity down technology record We equity we saw million affected. given $XXX down. equity to Global LCM, driven revenues return FX meaningfully both in and of increase down and variable XX% XXwas managed our driven FX has before Page $XXX performance and Operating $XX X% On of We the XX% of development million, in around capital financing, management our higher a by The up X%. seen July both a the the pool XX% offsetting on bond of in well expense were the fee conditions. XX%, but was as as was or which underlying global and marks, mark-to-market tax as losses and expenses excluding down. of pressure Global net well, XQ litigation is primarily markets of had by XX. delivering that the fees compensation, haven't expense a mostly X% Page and market billion ex increased loans in no advisory on

by by of across with recurring on higher and the was P&C, bank net income the nonrecurring margins XXXX. revenues real control. and billion from to XXX with income a credit Total new strong past higher X%, of up interest board mainly as revenues the actions. months. estate Net deposit rates including over as impacted from interest deposit year-on-year X% inflows to business was loss due good profit by fee gains well increase transaction-based million the income. deposit FX card The travel net spending investment result by $X.X in rose credit an Switzerland. rising up Recurring was year-on-year P&C driven NII, increased before revenues and as momentum cost Transaction-based comparison tax our of leading in X% Moving reflecting product in and releases X%, in higher transactions, quarter second were increases CHF revenues income XX clients. management

strategy. flows loss For This million investment release product the to down and $XX were a investments by increased $X.X with net The Banking expense. rate new and loss lower million in growth was credit we were X% on quarter, ex-litigation credit Personal personnel year X%. ago. as $XX compared continue expense billion of technology a on was digital largely offset Cost exit annualized

Page position this a while slide, XX. quarter maintained our distribute strong last above to capital according well to We plans. capital the guidance, continuing On our

As our of The June, ratio and of an amortize from a to the our in through sequential value CETX €X.X CETX costs. with the capital XX.X%, portfolio leverage end includes was capital ratio was increase benefits of HQLA billion post-tax OCI CETX fair reclassification connection X.XX%.

we including reclassification and transformative in change our and announced recall, growth in you investment wealth February strategic growth U.S. management funds the requires This in strategy of As initiatives. portfolio. in our this update, the banking plans transaction organic the

Turning end our to by $XXX increase offset Net billion. the basis walk starting CETX capital points $XXX contributed of returns at to at quarter. of shareholders from ratio in basis and the points XX XX.X% to billion profit from capital XX basis the RWA last points XX

the I impact we just of basis In mentioned. had a addition to point that, reclassification offset FX, XX by

during capital-light the the Our management back was In performance. remains as risk including to rates. payout for of To $X as interest of second business billion With capital of exposure of ratio a and our billion proactive buy repurchased of Friday, rising XXXX diversified which the year, planned. in $X.X the shares $X.X took $X.X good And to we conclude and contributed first place year, number last quarter. quarter's story to have we half billion. first the XX% the strong. around the and accruals of buybacks, expect half dividend model, billion

for close costs growth. stay to sustainable let's and our questions. to strategy continue execute long-term open our deliver remaining disciplined on With clients We up that, while to

Instructions]. [Operator

Stoklosa Stanley. first Morgan is from Magdalena from question The

us practice. course, and Central pan interest kind run one going this So what sensitivity questions. a the into up kind two it on a and Because, regarding rates as of negative U.S. published sensitivity then another net into basis? from course, very rate got the in of about charging and slightly rate changed Is the dollar on it's U.S. and this. Bank of and, hike We versus change also of dollar? you're I've -- Swiss your generation slightly inflows pan NII But give to spent your of you've course, that's unsurprisingly some coming kind and you biggest sense and Switzerland actually had question franc -- time to effectively the course, more thinking of initial fee how the a of sensitivity. quarterly wealth is above move different and kind trajectory kind a having deposit But out One of trajectory going you you kind the franc on of through from think of sensitivity us your it here. X. less liquidity it of of Swiss rate new goes is is the slightly so out kind last given kind NII, of could given how Could forward? on of to of a going the that. of the course, How also really

Your in particular. NII has already in increased by GWM the XX%

again, you've they NII. inflows I of do on a pipeline in product-wise? see And little kind know what's sense was the give on of looking pleased got Could And just course, July, kind go those on APAC. that's view flows, you've but us in like? forward? Americas So further -- maybe slightly a of going your I very bit where mentioned out, to inflows, the you

Magdalena. you, Okay. Thank

Sarah take NII, some asking and for the there. the quite flows NII one you're details will on the because on So

the bit give work latter a answer. that on So before we

saw in kind full now our see Asia our a the looking fee-generating look the of a of what them we're muted last see behavior after managed actually assets, around -- at to that's with clients, fact that at Pacific, €X.X yes, already generating coming very the Pacific. year secure -- billion new So net been with have and for able in over Asia we X almost fee clients you our through given assets to we opportunities of had transactions the a that that to quarters, And on working in happy you the net terms new in business. they

So that is that happy something we're very about.

are also these saw fee-generating we knows inflows, and for our fee-generating We outflows example, certainly there. X.X net billion are in to here new on specifically expect said our we that, future, this as a focused new some are through and net of alternative in very very as CIO uncertain U.S. is what They we times. Switzerland Having well, supporting customers the attractive. therefore, mandate saw assets, higher strategies good assets with Who the going forward.

continuing third across example, first of for the of assets. give first in generating further are franchise. hire, basically that financial net in the should We week positive to rise weeks the advisers also broadly the the U.S. also quarter, And fee new whole increases look of

So of we're first that's advisers U.S. in we to the And business there the quarter least of the quarter, this the broadly in what this hard mandate go new positive flows. recruiting is a saw we grow making this. also as that do, weeks clients, I to Sarah? it X sure go. well. But as further continues at much can on staying tell I what really can't working close Managed to will financial business where you.

Yes.

in you're of the some and U.S. surprising last the already in changes, it's not And were that not in. would I say, of NII, quarter is decreases happen. I the course, noticing of as because what we which that always come sensitivity expected seen that's and the Switzerland, then, events had on we is, and think So mathematically have to

little sheet of I gave it has balance terms guidance quarter like happened. we that us, a quarter. what in on say is for the So thing would into basis to dig as that how stands you last gave the a if want last that And we translates bit that first static

heard our that margin The year-on-year XX% strong. excellent actual XX%. lower The betas. was You And sequentially numbers the GWM, the than up mentioned, I in our were in increase XX%. by betas performance modeled

Switzerland, did the the have translated done, course, should was In we, experienced. of U.S. the in is that what we which clients that what we the as rates So needed, to on is changes we

for Switzerland. that We have or that in always least the very is on would are in today and zone is And X expectation the able positive that little we the place the a news, we be a stay to us at X the into from territories. we'll once that is benefit good curve said the best right not though probably being to close tailwind time

depending coming up. the So where even we're just more of to before year, of ends of of probably sensitivity SMB quarters kind NII kind alternative likely maybe the to the probably, beginning, actually of a of headwinds see through, stable couple a even let's mid-next say, kind that

Yes. headwinds, -- major Well, think I like don't very honestly. well,

client from. the situation Clearly, (inaudible) that at sure that at SMB basis way on we minus the very side, side, so not we pricing deposit minus where have if XX done charge is on our not one the comes So points, that to a much XX there, and side pricing more. loan the at I'm because right? do where we're minus has still fact that can't at with the But points it side, look the points, So -- XX there. anyway, a basis that was basis is we full

be does talk but of bit it there, SMB hike may downtick, yes, further the if about a perspective, that from not I headwinds honestly. wouldn't a So

So...

The next question is from Chris Hallam from Goldman Sachs.

So questions. just two

XXX Wealth I of put Global it to into margin around in on time guess this Management year. NII Firstly, It's sort this up versus net just numbers, interest QX. bps in a bps XX point. last follow-up was the around

second, by could first sense a whether sort if expand you global So there's couple picture of QX so within much be a more any I that mentioned margin client sentiment backdrop? next that have years? far. over nuances just the then remains do subdued fairly that's That overall regional or And my in would you wondered both consistent how of And for of question.

Yes.

always, how away if so a massive have we currently as allocated look their change have not you into at cash, seen also from cash. clients investments, So not

year, in XX% it cash, like was cash. So last like XX% now it's in

So we where that's really. it see not

If do sentiment, of with across we being look sentiment and more decrease the regions. Asia a optimistic you investor see different at that

the little a it. around that's So sentiment bit

indicated just through. In terms flows first we quarter, of the broadly flows, of positive the X weeks coming I third the saw that

is be, on to the not So are in NII, be precision terms we but going guide further to of there upside. certainly deposit going additional of the margin could the what

next Abouhossein The JPMorgan. from question Kian is from

Yes. Ralph. have you to at UBS, questions. Good Sarah. Two Good morning,

of all, thing strikes at Management, in today if I Morgan is the underperforming which is comparable. in me peers areas IB you're you're Wealth that underperforming Stanley, all that and First numbers, U.S. look U.S. the

the quarter underperformed movements, share So understand income, don't you about to clearly, Board, fixed on want make sure because wealth but why perspective, I'm IBD, I equities, even (inaudible) market just discussed yesterday. think Wealth, trying terms the say Europe I U.S. it, from to just and future your you second in in Executive of would you against

that talk wealth derivative well, deleveraging, is taking a terms regarding to again, advisers structure changing? with that is I itself of declining. is the considering as new of coming change about And (inaudible) little if your And or further. role. Clearly, stopping you take bigger in in slightly again, in management the a the it management are still bit may question Asia management, more advisers can Second second wealth back area

Wealth. Just that wondering how changing is within

I'll and Kian. you, Sarah Thank can answer in. fill then Okay.

the I'll So with one. second start

It knows, minus third we net saw the fourth loans. the in on much new But really do expect how €X.X billion I So the depends and honestly. and that of of certainly continued Pacific develop. Who Asia more will end within deleveraging in last the be that things Pacific news Asia in deleveraging quarter towards optimistic quarter, from there in coming Asian. China

uplift on China. in an confirmation get political also Asia further also whole and in in at of things then will that confirmation expect And do the with basically policies do the pick the a of moment I China area lifting stop of around of with restrictions that back whole So with will the and deleveraging up. Asia area And the of COVID to that leadership the the expect that, time. a bit I economic that, the

numbers, the Now will have I what can't the happening in as now. is update this you We it right But you for saw don't time? at moment to quarter. continue X.X% so minus

So loans. with margins. the Also you through expect of the market to decreasing to levels, repay have some our them can

have So relationship a that Asia, lot expect. think the direct can that loans is we of And business kind I it's you lombard of there. that's in that

really picture overall the Then specifically leadership, in that kind the of that's here, as big there is to a from perspective. So not change honestly, change there. a

into focused the So at a that scale income profitability. much strategy in are in the turning codeveloping U.S. steps Very the improving the ratio, further cost we Tom what have remarkable the done U.S., has next the U.S. job on decreasing as the to

to look it's natural And only so for XX remarkable what's with him after next. almost at, okay, performance years UBS, And there.

on experience. digital local, proposition, U.S. crucial about performance, perspective, because have plan the all you we support relative and that, P&C go to also is (inaudible) Naren of and an we very We for sole for much now then the Asset believe way are also the wealth member the basically, for ambitious as Naren role financial have those and management with management, wealth the IB and complemented brings those organizing a an and looking at That's color maybe I plants it Sarah, that's for Management IB performance? U.S. but for not taking the focus for some and to it. leadership. side, we the reporting Management Wealth of a the lead a on that also with to U.S. me original together divisions the we the but the market. asset be With but the global the to region the way (inaudible); from there will read responsible as more with advisers Hassan of strategic team Karofsky; in the plans structure, and Sabine management. good regional executive then pointing also That's execution for are that (inaudible), plants, digital strong can for there certainly Rob And with the So And Sony; team only then way with think then execution

Yes.

the maybe comment same performance So has the I affected we first way mix of were it quarter, looking in reflection IB mix think the at on with quarter. our start the I'll a were in you're second the a general how and basically, when that performance our we in

we the first in the in we equities tremendous quarter, had much that very a towards and was towards here, solutions and saw outperformance reverse. market So the

on APAC U.S. contributions. in of for U.S. So was in strong accretive terms the business. strengths Flow particularly in houses not our we were the very The

where on a you model and business, we know, that we view solutions ecosystem focused very so capital-efficient are less to the efficient. on the are additive as which As capital we have less Kian, flow

participate we really that the adjust then for peers public you and up information well actually for if markets, regions end as you and story us. being pool. on mix, world rates financing a the adjusted as reported adjust was less the that they as basis. the as then products performance. not do as our for the the if mix on the end that explains So in strong of whole the good so to and flow fact a degree, And well on clearing. a if range deal account We based if see up are participated in you the within that do a And we and across the all FX we we fee did adjustments story. you then in the you but are did for U.S. and that less We side

XX% that at U.S. terms that got I when being of ended up the situation, In of you firm. contribution of overall, look actually think a the you've the revenue

certainly and is spectrum were strongly and versus outflows not is wealth positioned tax-related noticeable, course, contribution the the U.S. at that is year. contributing would business We NII I billion already very of and $XX got $X banking the much last in high so So $XX billion strong is from with, billion end that, of the built, being UBS that not that from say the that because

my seeing did positive I privates in seeing also would remarks, we're prepared it's the have the in mentioned in see have you the get particular, July. June, X seen positive to being not we're U.S. contributes. the back outflows but around all then of And as in certainly weeks flows We catch into in we surprising, I positive In to say the And U.S. but offset. it from and the So SMAs net that basis.

fact that's So another tax of affected. proof point May were April the and that very much

The question from Benjamin next Goy is Bank. from Deutsche

and in One actually question control cost GWM. cost on

Spain. so you needs European and And in say, revenue linked comment the costs here? selling were perspective, playing think can was think business that business it's I is NII in is a that I improving, that you and up, light then going to the in Compensation Can was down. from outlook how particularly own where keep the I you just is went you sold you're Austria revenues of the Or out? consolidation your meaning on high? really market Maybe through? investment actually to which see and of, limited. new I there from just rather that wondering then process push wondering secondly,

there. beginning, Could question your a first lost Sure. Benjamin. you Thank bit of you, at we because repeat the the connection

right. be I got So sure to I it just want

sure. Yes,

very is Now going compensation that. saying linked I'm limited up, to income interest there's net and typically

hand, the are falling, an On adviser more the on compensation. it's impact other where fees

So forward when that going pressure? you plays I the and needs think how of competitive about was also sort out investment wondering

Okay.

is So Benjamin. on what is, of the a one, bit it first so it

cost their are through interest. our it certainly is. investments markets there no advising had they is in a looked That years best where interest produced the the their this really quarter are the upon from have money the They also clients coming very cash but good that really us that and of would I clearly advisers management, what deposits, on is to corporate well. So And -- in financial that's mean, clients. advise close as they a And so fact basically they act in perspective, lower income for and they is a ratio. at are now that interest income

looking per revenues the their se, not what So at for be. necessarily then quarter would

model So adviser the and distribution is important us. to very financial

XX%. done leadership. the know, that you and productivity been gone important. certainly last have is But that over well at. has have of X one account that improvement of And working Tom's really the the financial on As the X increased what franchise down as we years we on under advisers, which is the And look since the and years, by profitability you account has mentioned is

very better important. the they point, that and I have can this their efficient That and specifically, products moving have so our advice even them they wealth now an is -- to your that screen that higher So actually in ensuring the and financial fashion. they that, be we clients advisers get on supporting And but can to in they productivity. can that the to invest well,

the committed is we distribution is project, the is important adviser to for financial are remap management, we one So the wealth channel couple had that to whole our that we new where the new core and because a tooling the offering in the invest of at in digital very releases months those advisers. of financial releases pickup U.S. with just And our two XX% support is last our digital of basically, the in

So so it On we're the and really that thing to it's doing effective with I don't more shows clients. for them think right I Europe, their be changed, look that way at if anything, worsened. the has probably Europe,

wealth -- the Europe European have the why can be, country. to can coverage offering, generate that of Austria basically, sell not actually is to we the the creation Asia basically banking you have do that investment entrepreneurs we businesses locally. on where top will looked a don't be family coverage then And in on scale wealth locally we how to we whether that with And we basically, from where for necessarily we will an of to model can at and need support creation right to strategically. creation comparison activity the want then So plan depends at the the basically where active local that's the necessarily area came our major really then be looked Spain. And and the And and the expect around where actually wealth businesses is discussion that in support decisions -- the a that's side the U.S. we you the every Europe where

scale disappointed other the our we continue think in order I'm not we market union, local player. actually therefore, activities. to scale the feel on need The size the depends still the really for you important there. enough us, real large to progress only to where, And But fact, a to a for be sufficient continue with so one banking That and also offering local factor. our opportunities it countries, locally an is in of in us I are much growth build creating that whether do of

question next from The is from Tom Hallett KBW.

of I have questions, please. a couple

much Or there? we if the there's firstly, any say the flex on should normalize. just to from expect broadly, the And quarter. now something in hits is here wanted guess cost So fail conditions LBO XQ But know flexibility I secondly, there that Investment obviously booked should to concern you've I I'd Bank, is then some in good in is how instead? demonstrated

cost of what terms in can what are So additional seeing pressure levers be And pulled? point? you currently

Tom. So

So answer. the will first one, Sarah

one, I'll with answer you second right now. it The

important if we the flex are is and it we see have range our current -- look said So ratio. model expect our do of That's to income is of targeted what kind further necessary. we you. we that, stay given within with there cost-income at fairly it cost Having first, ratio to if plans. current is And that do the confident the

sacrifice cost do that not terms they we in of focus plans the opportunity really will as the we are at But cost. those delayed growth we in that looking on we We're growth unless investments So the have show. speak. plans

the this strategy. we there. have a know, million work $X that So place, savings side. there not we we to is $XXX as year. will plan plan feel on in of which out may we could the savings when are And announced deliver and that we flags some of are that billion we the and you some we track If the clearly, announced that -- on truly growth plan fully come

important there an bonus that important a in thing that that's to our end, that also to and manage also is the accrual well as that's keep such another control. factor So down, revenues be is And factor the then the if under cost. will are costs down, our

So with that, Sarah, first question.

Yes.

mark-to-market In we my had in estate. that remarks put prepared loans I terms $XX of LCM net million -- on real and corporate corporate

also in marks. that think I July added affected was asked meaningfully our for I've was number. you included So no has that that that there what development in

so And our market on expected BXB managed our X, we well. this X, an would about BXB you have we than share based of you is what believe have and market when think the of that in context risks that less share our that in actually outcome is

Okay. And a Ralph, just follow-up. quick

So maybe seeing office. the What one pressure are key kind back the at main pressure you're points? of moment, regionally points the there, points of cost

some personnel a base so. you markets active. inflation in the Well, the our tension that in so is a that's I labor mean, areas, the in know as part still of well as cost in combination of real we're cost And largest geographies which

the through end, things pressure inflation in to unfold, how and in So that's less in where say, there as salaries also a depending also market will the tension. salaries where of on see the And well you upward label if still. be come on areas stubborn, general so that, becomes will

use spend. as coming that's our total lot do With other that a we we can in but the continue productivity, of is a you so account as could we are to which we into the upward of a really of we also different see pressure my digitalizing further engineer working way. well lot invest, can account. a What that and through. create translate technology that not to presentation There's percentage processes basically of we that, currently hard about the where than indicated So manage on the most

productivity see a are couple those So up of and areas where pressure we gains.

manage how mix bit. we that's So the a

Benhakoun Flora Jefferies. from The is next from question

buyback Yes, to is you the plan. first ask the on question I'd like

But to today for finished you this you this will you You by the results. this time that at year. be QX $X probably confirm with pace, published buyback stick billion buyback the

earlier here from second that heard published rule to And all QX made for to the possible in should February understanding you is could question Or Swiss on on considered results be expect, buyback comments is NII. the U.S., it this already going just reloading are year. the is in the decide So and the today's what you results? early standpoint you call I before not this as as year we something full exposure. the back next out

Does guidance, a the did NII least expect on provide that should guidance, to the you we year-on-year quarter additional additional the used X this you for guidance hold? for does previous year. in billion that year, You this at NII

Yes.

back will of And shareholders but you basically that buy X what with a capital market to As we mix the be had It question, 'XX, Further -- in results. update will on share well dividend we time. the of our buybacks, beyond around already distribution way in your shares, that's at confirm see we moment billion progressive our to we and X will do. our and will there. we're quarter on

have, billion shares. €X now, program For of focusing repurchase NII, buyback which are Sarah? is we we on that share the around

standing that the the answered static given by already to it guidance reconfirmed was I balance in we're sheet. I last on question, Yes. as quarter the previous a

Stefan Autonomous from from Stalmann Research. Next question is

two I please. have questions,

first the on So deposits. one

has whether guess deposits market asset other you or moved out you if disintermediate into that's gone I have why let's to the have look deposits similar peers. into, it they quite And outflows not quite Your during down can you at expect actually if these deposit say on where funds flows, quarter, deposit more X% not seen Do the of gone and what has Wealth you management the U.S. clients forms of Management visibility Global do we bit, a happened. in which probably say, money forward? have actually at balance case, come have going And have any savings. products,

you these rules. question any new higher maybe requirements the seen say changing you're on liquidity, but that and early quite impact see still the sheet an guidance of please. you? impact balance could I've facing on The And P&L liquidity whether or that on give requirements us for Swiss uncertain, on second now you these rooms on you is probably

Yes. audience the weeks can Basically, X I is just Stefan, X one, the weeks finalized on be ago, second ago. short.

before that, waiting one. We that And are can't we FINMA for anyone. guidance have on further we from update

So we before really give the that on want first on one for the to guidance updates. deposits. wait we Sarah, further

we a noted products There the have was products, strength in took you into as that very, the there were don't is bit government mentioned people banking, to as grow. duration when we performance very to And of peers, basically money the were a bit and but say they assets. especially able deposits, checking actually little the the because our extent in It's our usually good flows similar market. high-quality some savings flows little would TBL we that important definitely you your some a of question, it. retain into have plans in something are yes, treasuries a to amount that On given U.S.

not a directly that because think, similar accomplished to like we we And terms to where tax. having of track have I went saw going, So good given of percentage easy a in it didn't that, some it's specifically is outflows the performance.

it back. And so then you see can't comes actually where

from Piers Brown from is question next The HSBC.

was I of gave number in has linking EMEA is new questions. by and X this the I'm just assets outflows only few One €X.X money that between Just Russian halved held those you it just to the net for on movements. limited billion. the And flows. The think which quarter. looking residents, at disclosure

movement, question second CETX quarter. there's been OCI on this is impact The just the whether any significant

Sarah? OCI,

the impact you RWA on CETX would down. it and by currency So then $XXX the the then running that see that is what billion offset through in and of simply $X million, OCI is some is

headwind point then net the I reclassification that I the have mentioned, is of going and so that much. XX you mentioned, And And direction which offset not basis but actually the it. that opposite of the all is

this. the Russian new don't on to can that with terms also decrease Yes, into to clients. assets generating we go of yes, part in have further is Piers, in with do for But about do question your certainly EMEA. detail net Well, also fee of --

Could OCI Okay. back I the come question. on just

the a U.S. the liquidity I which billion figure that treasuries think last gave within mainly you of quarter, $X and is think MDS. subsidiary, was the for book -- I banking

in quarter. the primary size the was had of from? that driver that OCI think Is I book any And that area last composition is the coming reclassification that moves changed the way? is in you or

Yes, that's $X much exactly is AA the of high billion above. billion quality shorter is $X left extraordinarily still right. that was what It is being about. talked reclassification I And duration that and and

Yes.

is question Andrew Coombs next from from The Citi.

please. and targets a the on follow-up then question One flex, cost on

XX.X% a income, of X.X% on If on cost you gain obviously million one-off JV. you numbers the published from look at Tier and core mix benefits return but the X the today XXX then

on cost for a at return try ratio. and an I you you're X about the looking and adjust that, for if XX.X% income think quarter core XX% So about Tier

to can well. certainly the still you beyond you income XX gives cost the So the that year, target as XX% this confidence achieve XX, what XX% and

down Just obviously market down down means we've ex the a And question step anything accommodate do change every at There is we they're to move seem in step to market recover. And or when your your an assuming X% look what from for to be in it Coflex, accordingly, back coming that flat up on seen a the levels then markets you litigation broader big X%, levels. cost that perspective, in the the cost in output point can division. and revenues. big yet, don't doesn't

lacks beyond cost and already said, what above could you on anything So you've add please?

Yes.

on I Andrew, clear. can one, So second be the

right? we are to you we continue have we plans. As So know, invest, --

have We strategy. a

different where And you We will investment. as some updated levers. categories those then not see basically, related worse, also are are pull you and revenues. to our sacrificing also of things in if we we is But being There of areas. in that areas cost our on And have the get actually those levers investing strategy. to growth we the pull have we investments categories

we Sarah will I are as is the said there comfortable do think you cost/income the guidance return well update staying as around that, within range. So the flex. Having with sufficient And there. range

Yes.

on estate million; is litigation, it's say, didn't XXX really the accounting XX; sale, I gains do. what So follow I this $XXX your net; I because all my (inaudible) math, is is math, real when would you JV do XXX.

you are the all the And in number a bit, is with but certainly out I'll little you. not get so mid-teens, low at that a follow taking you teens. to up

which would look the at hadn't No, think utilities explains I you accounting which the well, I delta. as

take for So it to those reverse. I how guess be, would today the follow-on question does

so But give they and project long which definition should asymmetries a them. consider we being general, have and could to do suggested basis have like to the to the why of shape the curve. don't to over you We them. all time, to that happen what's great between in I going scenarios. you'll back currencies LIBOR Well, you them have is They zero, to of of are the swaps a between those way of sensitive The different estimate. an to know period revert basis

The next Bank from is question Canada. from Royal Anke of Reingen

I just questions. have two follow-up

in you've as just The well. I and commitments seen the worse, guess quarter, guess, took finance the the not and us just that in first the no said well. disclosed guess, got and the us. XXX that's on would XXX to the also high. pressure distributed you million to will that leveraged I too and you as you have about bodes XX I And million it The X% just ex-variable litigation confirm marks further July, yet relative the you confirm I that i still to stands? guidance million is to can in report Or mean, I your cost. that your about previous been mark-to-market. refer believe then guess comment wanted you on is inflation comp you the suppose FX your about

Yes.

So on costs. Anke,

from indicating, from was labor markets, and coming I stay seems there's longer certainly coming inflation intense to upward as as than pressure So well, expected. that

perspective, time. from at moment categories all we're that So in this really looking at

running increases, pre-everything we pre-FX, then would cost If you our at look be around X.X%.

We are working down. hard to moving that

in that's on. working So we're two, the whether it's the it what but be will Xs, exactly

most also important way So different us, up the do staying FX do components. costs in FX the for bit And has also helps to your rate But as ratio, the that come, of X is is which the have we're exchange, And you the inflation cost the recognize an GWM. I total what have pre-FX. therefore, on at element costs. and side managing income as And pushes look cost the FX is an us basically measure change, the moment, of as environment. not all well managing side, a this confident with said, just FX but Sarah, that to we can efficiency the we on on that. we at other FX

was know from. XXX didn't the I where coming So

Yes.

that did yes, we at we in our sheet commitments done. course, actually sheet, and we ago come terms provide on that balance And significantly the we carefully that effectively, considering in off down basically, from and comments our the of in a So space. balance marks but have year have both committed we in and look are the our everything is of commitments

So yes.

But quarterly guess not I distributed. of the that commitments say captures it. guess yet Okay. Yes, that XXX I just report you been in

will we business, indicated, per that a have always at the end books value, right real So be book across the on of we also that It manage always estate, you the this you're feel Yes, been And lending that the markdown are. corporate million XX well that to as time, able in X of as the fully right? representation is we accountants have in moment is quarter, kind as end, where we I leverage, book. distributed. also have that conservative But and that that down, quarter at is the and what the and of are right. that's the the mean, shows different pretty not positions a

from Cheuvreux. The is Nicolas next Kepler question from Payen

questions, two follow-ups. have please, I two

would X be GWM. inflows first in The net on

tend inflows in and we them way Just actually. directions. same and different net leverage see going in Asia, evolve the to for And Americas

I the is any know but if So for integrated bit how know I inflows And is there a such quick just wanted side? perspective. UBS, or more on within doing to comment on second a trading Wealthfront the maybe that in environment not is a regarding Wealthfront reason that. yet volatile more retail qualitative question, particular

transaction I Nicolas. is been consumed. Wealthfront comments you, making refrain has the not of how from want as doing because Thank to really to kind

doing. us to are how on they So it's you not for update

have -- acquisition through waiting go everything executed, I So we to you regulatory support regulatory and tell but for which the for is prepared business, how support. course can you be of that we're this normal

that's So one.

On tax terms in the of the flows. versus leverage honestly I just think by driven is much the net U.S., flows. the this very

do growth our we we last real business that the to -- for a nothing And growing X on been see quarters. lot and very that's (inaudible), -- grows -- the see That over quite in well in that U.S. has ultra-high lending mortgage individuals. with So book net a side, worth we're mortgages. we has therefore, high

related So And your to the by tax. outflow to related are largely explained Sarah that negative as flows a already explained, is U.S. not in higher-than-expected the flows. necessarily

Goel The from from next is Barclays. question Amit

So some follow-up the I've on NII. got questions

previous said this for is I think The by the first question guidance stand the of GWM you you for that NII for remainder year.

below. I QX guidance was previous think So to little relative a bit

to bit betas was were of model GWM. think, secondly, a than difference the more is obviously for was would comment drivers there, in just in that for and given difference understand a for guide the strong the than I less just which thought? What wanted previously, up NII growth terms that XX%, sequential or more still a deposit but ended suggest the was what check, about so -- improvement, it especially I bit in of And you being previously what a XX% terms anticipated. to So QX why up QX

The balance guidance was guidance. static specifically sheet a

per way as the sheet balance was the guidance given. quarter. at of That's sheet end balance the the Static first the

Okay.

in deposit is different? balances that decline the So

That's right.

we the So that's the guidance. way had given just

is can that, your so nonstatic balance assumptions And a after in of sheet, which on life. you reality build

Okay. Got you.

a of the balance bit Or QX thought? so QX? for sheet now X still And previously on implied based is higher than is the as it

some Yes. quarters only you there chose there because Again, X at is and is only into, and get X point, quarter. we

So decided guidance was stand done. to as we it just by the

Terelak next Mediobanca. question from from The is Adam

a So couple of me. just from follow-ups

net of but assets On fee also the terms in outflows, some in decrease to tax generating mentioned U.S. new deposits. it the in the U.S., you the attached of

lot more XX two. a how And being of wanted not split it just off coming to is the billion bills. that pay color across used deposits out is just is that I So tax assets? to why get Why fee-generating

there message $X of great. be a for go schemes. So you you're hear back on on market to just little employee committing And then share the bit color that. would your buyback, I the to into the billion, the need Clearly,

a volume of top of us just at some what of that how into heading Clearly, color give could you So attached year-end. then might be should to billion. we this on about And think sort from how year-end. the you volumes program of market going ABV much think that being out every go the to day about single point, to just very managing XX% buying through when those complete to you're $X

$X.X are to the can of plan and conscious we million for at Friday, last and living part what you of tell, we because as of things also So it's are we not exactly have know last early do, ahead being as we minute.

-- is we, that complete number And tell what all $X year. can you you don't I the for consider to that have regarding that and we But so ability the I full again, we for the our reiterate billion of employee the specific piece.

to ask I'll that (inaudible) up follow on specific number. So

Great.

buyback. on here caster before discussing kind $X Just still move are is next to and we're to of Can still on I year billion the confirm, ABV? the going limiting again? just talking Or we

not I $X factors. to limiting billion. and execute guided about will would say $X billion, We it's we

Exactly.

per as the will of end update the the We fourth market quarter.

question And the are. the taxes. and flows, then on that's fee other where deposits versus NIM, assets new was So generating we

clients several our accounts. of most So have

that have that come from a come do they million have actually the duration lot $XX seen out have of we And mandates. the flows, of So only from that. have to just they were But not deposits. some clients that seen we say to not able

Okay.

pay So to selling product taxes?

Some, yes.

when tax about the your portfolio you as as in also optimization to It's sell U.S. well

they of or well So they optimized. basically invested calculations assets. pay between deposits specifically, pay it to and very It's whether whether out the to measure make out of

next from Jeremy is from The BNP question Sigee Exane.

follow-up, please. your and the I forward guidance Two take NII point curve. on the

standing by You're comment. existing

going wonder give stands fee for currently to Is Global the business, that The up is from to basis basis of are margin do to gritty. in curve points Wealth whereas what Or looks second in anything X Q-on-Q? my on not decline you the like expect don't into a a margin is there you couple with thing to question. mix -- loans a just is But the asset get quarter. sense just to gross in want asset Management, points down XXXX, of the comment the if quarter-on-quarter. overall margin quarters, is the into quarter-on-quarter, that what fee-generating XXXX there? the a terms generating You first could And X in the That's X of compared what forward bit little I that uplift it one be in as XXXX. nitty us unit

on to have probably back come we'll well, to you Well, that one.

you So follow with Relations why margin up on the the Jeremy. don't Investor team itself,

beyond one, 'XX we the environment, other don't rate the On guide on honestly.

to way. a a also pricing, our just in margin therefore, but it the So as profitability book at also let deposit commercial look book, put that our I again but book, for business. also with we think build a calls do a U.S. a in about build OCI, U.S., and the me building strategy And funding, the if Also for also wealth always book that's our strategy to go you next how the that this is build not as you with you also to where manager. reclassify bank loan And that can bank, you to what requirement value is we around the the maximizing deposit and fair way to manage the our opportunity, which and deposit it. indicate one in terms in we the do building of is to is deposits a

that been it. us for it also So past the and it against more that, reclassification forward strategic and hence, but funding of against price going also book us. as vehicle NII, for at pricing is it. more impact optimal we Hence, way may the pure therefore, have is qualification for the looking in on deposits hold the we bonds a It with HQLA book of not a the really and the the

So it's all related.

from Lim The from Generale. next Societe question is Andrew

I just peers. else you than wanted And performance. know strong, Wouldn't macro to flow quarter. business it really, but say refresh at the strong FX. weaker IB rates is I U.S. was It and anything was notably a

is on in And about just APAC secondly, versus thoughts some macro wanted that there geographical from So the there. portfolio talked of net flexibility past that. your side. U.S. just and to size a this if of I kind then Is know factor for to a sheet could just the maybe own limiting interest could especially are that on surprised invested for balance main we've weakness increase there? having explanation about there greater you bit bearing what up business And in I more see income? investments bonds. the and your explain your bond sizing by upsize your deposit -- there Or I'm more in like and the sorry, quarter a treasury that the performance the mean increasing and FICC your I'm bit here, Europe was wondering

and a And again, first I on we look it. versus one, bit way markets that's Andrew, quarter. think we we may them second results at outperformed lack the and why our the in the So is components to first peers there X we in the -- quarter basically

specifically feel are biased factor. I or have peers have know, Having our that, a one where a more X to feel that the first indeed, increase rates equities But we peers for if That us. year-on-year, towards what shows footprint. bank you is towards for markets generally the build markets are have very equities we is XX% bank. exposure us setup don't to to global second bias U.S. products global in exposure the are versus geographical we in business. the we said we -- line one. strategic in more more structured good U.S., main our that, the for And is the That that, those different correct factors how is the less in investment with and mean, are investment an one build is markets business a revenue The investment over you the aligning business being an number. for we as a time. want bank produced, And headline we And the but different we business, therefore, much

banking investment ecosystem management but very in being We are building asset in grow an management, which for we order an for important investing that, are investment capabilities investment bank. bank build an to wealth don't and

then that some also some outperform explain them. quarter, then will them of in And peers it us don't makes have. outperform and activities our do X us. in the quarter, And I we that have the think other that of makes

If bank. you investment at the just look

trying quite The understand what Andrew, Could ask. you second honestly, question, were I you repeat. didn't to

interest can investments, income, I see to investments costs. rate move a In upsize of guess sure. some to sense classify makes bonded in bond environment, rising increase given it you these and Yes, net whether these your especially

your bond more do But Is balance you Or I opportunity sheet factor as deposits? limited and This seen investments. going of a increases? have deposits the see mean purely flex quarter, by do increase there. how shrinkage limiting you to actually, that maybe that we've lots forward

it can The think about from our the customers. we way coming is you have that deposits we have

get and we our and the assets would a the have we loans duration view to securities And then We sure coming have manage of that portfolio, everything the customers. X managing some to we liabilities do offset risks. on to replication a the the with making that of appropriate be the from and through net

I we in is is an the like of can take so but particular big would investment important say, there limit what's And no how wouldn't us, that be risk. unexposed duration for theoretically, terms portfolio

so And that and have the we of match a want that the deposits duration the funding of the what quality to is that loan reflects we have. we have book

is from question Alastair next America. The from Ryan Bank of

come into down future the you the down fee-generating in your fees, or back Management? offset in a there to income so up assets one-offs some excluding which QX where QX second, you income various or putting interest Were the into up assets and for And revenues money XX, the over cost came on that cost XX, obviously the And get in they headwind was net anything please, would that QX, well XX% program? costs. XX%. double invested Is to your aside Wealth revenues a XX, quarters into as back in step need snap to

both that we underlying they are directions. go quite when actually again, the we first the to did items So were close because reported half, the in for

make that you're with we And want sure issues that we so you're describing. not that you the seeing one, the doing too. are we on that And to review because math

underlying, as the Yes. So cost how the I mean, because can we that underlying so make also basically, that cost analysis on as that but -- us. are we improve report it's And well you tankerage reported is the important arms also as our we a is know are reported to what that so further and is numbers, right? basis. income on for you Ryan, we targets at report good look

Okay. And on invested assets?

that Well, the they has gone that. of market better on have then other into added reflect done have the we down cumulative because and flows market we, course, than

questions, in this calling call. There's then I'll Thank morning. this no you for Okay. more close

as all for that's clients sum you for and been through the very private where was advice, see from also clients, numbers. waiting sidelining numbers, our their think what to you and a whereas quarter this see investments up, clients have challenging our for guidance can really our I were our institutional it active,

as control. launching way, our business. in very underlying under put business, the wealth order well, have efficiencies that comes further to company working it it a the digital And view, to, in the me in together, in initiatives if progressed costs a strategy keeping on the our technology let to good in performance, We putting in closer strong and leading markets or business that Swiss improve

a thank Thank great so calling for day. I that, again And with you you in, and you. wish

analysts the investors Q&A Thank you. gentlemen, is for webcast and session over. and Ladies and

You may now your disconnect lines.

with We will continue short the Q&A media now and take a session XX:XX. break at